Headlines Biden cancels 10k in student debt

[antemortem]

BBC article

US President Joe Biden will cancel up to $10,000 (£8,474) in federal student loans for millions of Americans who earn less than $125,000 each year.
Mr Biden will also forgive $20,000 of debt for students on Pell Grants, which applies to those in greatest financial need.
The president will provide the details of his plan at 14:15 EST (18:15 GMT).
An estimated 43 million Americans owe an estimated combined total of $1.6tn in federal student debt.
Almost a third owe less than $10,000.

"My administration is announcing a plan to give working and middle class families breathing room as they prepare to resume federal student loan payments in January 2023," Mr Biden said on Twitter.

Original tweet:

My initial instinct is it might be “better than nothing,” but it’s ultimately a drop in the bucket, and there’s no excuse for it to not be more, except for the unfortunate fact that the lowest $ amount proposal is the one, ironically, with the highest chances of federal success.

 

[Morkal]

"$20,000 if you went to college on Pell Grants"
"$10,000 if you didn't receive Pell Grants"
"Forgiveness only applies to those earning less than $125,000"

"Average Medical School Debt for Public School"

"For the class of 2021, the AAMC found that the average medical school debt among students attending a public school was $194,280. Seventy-four percent of med students at a public college said they had education debt." (quoted from Forbes)

You described it best dave
This is literally just a drop in the bucket that will, at most, cover monthly payments for some education majors. At worst, people will have an even harder time because you know they're going to fuck over the lower and middle class with heightened taxes from this that the ultra-rich will never have to worry about paying because of the loopholes.

 

[Ununhexium]

I’m happy for the individuals who benefit for this but it’s not solving the issue of guaranteed loans incentivizing colleges to keep increasing tuition costs

Edit: also I doubt it will apply to people who refinanced their loans with a private company / bank

 

[MrHands]

Average US student debt is 39,000 but ignoring extreme outliers median is about 20k. So this is going to cancel between 25% to 50% of debt for most people. There's also clauses proposed to cover interest payments so for the majority of people your interest should be reduced to 0%. Expected payment is also being reduced from 10% of income to 5%. Income floor for repayments is also set to 225% of US poverty level, so if you're at or below that you don't have to pay at all.

So tl;dr it isn't JUST 10k forgiven. The plans are much more ambitious and greatly favor those who are actually in a financial hard spot.

Most articles are trash that pack paragraph after paragraph of nothing to get ad revenue but this article from AP is pretty good. https://apnews.com/article/student-loan-forgiveness-biden-plan-d9c8e18774a744187c9af634bf4eb728

Edit: here's the info in an easy to read format.

https://studentaid.gov/debt-relief-announcement/

Notable parts:

- Pause extended to Dec. 31.

- Forgiveness of up to* $10,000 for non-Pell Grant debtholders. *Up to means debt will be forgiven e.g. you don't get a check for $5k if you only have $5k in debt.

- Forgiveness of up to* $20,000 for those that received a Pell Grant. *Number/amount of Pell Grants doesn't matter; even if you only received one Pell Grant for $1, it applies.

- Capped to individuals earning under $125,000 or households under $250,000.

- Proposes a new income-based repayment plan which caps payments at 5% of discretionary income (down from the current 10%).

- New IBR plan also raises amount of income that is considered non-discretionary to 225% of poverty level (up from current 150%); this means if you earn under 225% of poverty level (about $30,577/year or $15/hour for a family of 1), your monthly payment would be $0.

- New IBR plan covers monthly interest so long as payments are made on time, meaning the loan would not grow due to interest even if the payment is $0.

- New IBR plan forgives loans of $12,000 or less (original loan, not current balance) after 10 years instead of 20.

 

[Celticpride]

"$20,000 if you went to college on Pell Grants"
"$10,000 if you didn't receive Pell Grants"
"Forgiveness only applies to those earning less than $125,000"

"Average Medical School Debt for Public School"

"For the class of 2021, the AAMC found that the average medical school debt among students attending a public school was $194,280. Seventy-four percent of med students at a public college said they had education debt." (quoted from Forbes)

You described it best dave
This is literally just a drop in the bucket that will, at most, cover monthly payments for some education majors. At worst, people will have an even harder time because you know they're going to fuck over the lower and middle class with heightened taxes from this that the ultra-rich will never have to worry about paying because of the loopholes.

The average physician’s salary is $232k.

 

[Surgo]

The IBR part where they'll waive any interest accrued over the payment made is a good start, since it means your balance won't go up, but it's still dumb and democrat-brained since your balance won't go down either. Just make the interest rate zero, you cowards!

 

[Magcargo]

Wooo, lets go Brandon! I graduated college 2 months ago and have accrued around 25k in Student Loan debt. This will cut that amount by 40% which will be very convenient. Considering that I was expecting nothing to happen, I am pleasantly surprised by this outcome.

 

[Zaphy]

The IBR part where they'll waive any interest accrued over the payment made is a good start, since it means your balance won't go up, but it's still dumb and democrat-brained since your balance won't go down either. Just make the interest rate zero, you cowards!

"New IBR plan covers monthly interest so long as payments are made on time, meaning the loan would not grow due to interest even if the payment is $0"

It literally is zero as long as you are making payments now, which is absolutely huge.

 

[Roufail]

NOOOO HOW WILL THE PRINCIPAL'S SON BUY HIS 8TH YACHT THIS WEEK?? DAMN YOU DARK BRANDON WITH YOUR COMMUNIST AGENDA!
(I'm parodying, obviously, I don't live in the US but I'm really glad that kids who want to graduate in the future might no longer be looking at a future where they're barely in their 20's but have more debt than a gambling addict)

 

[antemortem]

Well this aged poorly
https://www.cnbc.com/2022/12/20/sup...der-bidens-student-loan-plan-in-february.html

 

[Local Dog]

Jesus Christ you Americans just get nothing

You get promised a drop in a bucket and even that gets taken away from you. I know us Europeans love clowning on you but it's honestly depressing to see a dystopia this fucking bleak just over the pond. It's legitimately insane to see how it all came slowly to this

 

[boo836]

It's so cool that there's such a fundamental lack of jurisprudence among Republican judges that they'll just rule anything against their party programme as illegal, that's such a normal thing in democracy and speaks to how fit Republicans are to occupy any office